Q: My employer is a wholly-owned subsidiary of a parent corporation. Does a parent corporation, a subsidiary, or other affiliated entity have its own contribution limit or must the contributions be aggregated and have a shared limit?

A: The answer varies and is jurisdiction-dependent.  If a limit is shared, the parent, subsidiary, or other affiliated entity must have an open line of communication when it comes to making political contributions.

In California, a parent and subsidiary share a contribution limit if the decision to make a contribution is directed and controlled by a majority of the same persons.  If the parent and subsidiary act wholly independent of each other in deciding to make a contribution, the parent and subsidiary each have their own limit.

In New Jersey, if a corporation has subsidiaries, affiliates, branches, or locals then the contributions of these organizations cannot exceed the applicable contribution limit in the aggregate.  Two or more corporations will be conclusively deemed to be affiliated if:

• Any individual, corporation, partnership, company, association, or other entity owns, directly or indirectly, more than a 30 percent interest in each of such corporations; or
• One such corporation owns, directly or indirectly, more than a 30 percent interest in the other such corporation.

In New York, an organization financially supported by a corporation may not make expenditures for political purposes (including contributions to candidates, political parties, and political committees) in excess of $5,000 in the aggregate in any calendar year.

An organization financially supported by a corporation is an entity, among other things, run by the corporation, features no discernible differences between the organization and the corporation, and is simply doing the corporation’s business under a different name.  If a political committee is created by a corporation, but is run separately and distinctly, then it is not an organization financially supported by a corporation and is not subject to the $5,000 yearly contribution limit.

Each affiliated or subsidiary corporation, if a separate legal entity, has its own limit.

These are just a few broad examples of aggregation of limits.  As always, we advise you follow best practice to verify the rules in your jurisdiction before making political contributions.

For more information, be sure to check out the “Contribution” section of the U.S. Political Contributions Compliance Laws online publication. Please feel free to contact us if you have any questions.

The Office of Secretary of State recently updated their list of 2024 election law changes. Changes include mandating all political committees other than candidate committees to file reports electronically as of November 27. Effective January 1, 2025, corporations and individuals are permitted to contribute $15,000 to candidates and $30,000 to PACs or political parties per election cycle. An election cycle begins on the 22nd day after a state general election and goes through 21 days after the next state general election. Previously, contribution limits were per election phase.

A three-judge panel of the U.S. Sixth Circuit Court of Appeals agreed to allow the ban on foreign contributions to ballot measure committees to be enforced until October 8. This will give the panel sufficient opportunity to consider whether to overturn the preliminary injunction granted by the U.S. District Court for the Southern District of Ohio. State lawmakers passed the foreign contribution ban during a special session, adding green-card holders to the list of prohibited contributors. In a statement, Secretary of State Frank LaRose said his office is ready to begin immediate enforcement of the ban.

Chicago City Council has voted unanimously to ban registered lobbyists from financially contributing to mayoral candidates, incumbent or otherwise.

Additionally, businesses owned by lobbyists are also banned from contributing.

Violations could result in a 90-day ban from lobbying city officials.

Ordinance 2024-009664 was previously deferred but was revived when Mayor Brandon Johnson dropped his opposition to the plan.

The Board of Supervisors passed an ordinance increasing local campaign contribution limits for corporations, PACs, and individuals who give to candidates and their committees.

Ordinance No. 4479 increases the current limit of $5,500 per election cycle to $10,000 per year.

The limit for political parties contributing to candidates jumps from $5,500 per election cycle to $100,000 per year.

A newly created oversight committee will be responsible for enforcing the new rules.

The county previously operated under the state’s default campaign contribution limits but localities are able to set their own limits.

The ordinance will be effective October 11 and will only apply to contributions made to, or received by, a candidate on or after the effective date.

Gov. JB Pritzker signed House Bill 3903, prohibiting vendors that offer or provide equipment or services for automated traffic law enforcement, automated speed enforcement, or automated railroad grade crossing enforcement systems to municipalities or counties from making campaign contributions to any political committee established to promote the candidacy of a candidate or public official.

Effective immediately, the bill also prohibits political action committees created by the vendor and vendor-affiliated persons from making campaign contributions.

Vendor-affiliated person is defined as any person with an ownership interest or distributive share in excess of 7.5% in a vendor, any executive employees of the vendor and any spouse, minor child, or other immediate family member living in the residence of any of them.

The bill also prohibits members of the General Assembly and officers or employees of a municipality or county from accepting employment or receiving compensation or fees for services from a vendor that provides automated traffic law enforcement system equipment or services or automated speed enforcement system equipment or services to municipalities or counties.

Former members, officers and employees must wait two years before accepting employment from such a vendor.

The general assembly officially ended the 2023 legislative session on June 16.

Lawmakers passed a bevy of bills addressing procurement small purchase limits, contribution limits, and primary election dates.

House Bill 5962 and Senate Bill 0846 raise the minimum aggregate reporting limit for candidates and committees of all contributions received and expenditures made from any one source within a calendar year from $100 to $200.

The bills also raise the contribution limit for individuals and political action committees from $1,000 to $2,000 per year.

If signed by the Governor the bills would take effect on January 1, 2024.

House Bill 5463 increases the maximum state and municipal small purchase limits from $10,000 to $25,000 for construction projects and from $5,000 to $10,000 for all other state and municipal purchases.

If signed by the governor this bill will take effect on December 31, 2023.

Finally, House Bill 6033 allows the first Tuesday after the first Monday in the month preceding the special election to be available to hold the special primary. This bill has been signed by the Governor and will take effect immediately.

A newly filed ballot measure has been introduced to reestablish campaign contribution limits in Alaska.

In 2021, a federal appeals court struck down most of Alaska contribution limits on First Amendment grounds.

The ballot measure would cap contributions at $2,000 per election, with limits being adjusted for inflation every 10 years.

The new initiative will appear on the 2024 ballot if it is certified by the lieutenant governor and collects the requisite number of signatures.

The 93rd session of the Minnesota Legislature adjourned sine die on May 22.

Lawmakers passed House File 3, a bill restricting political activities by foreign influenced corporations, and requiring corporations making political contributions to file certifications.

The bill requires any corporation making a contribution to a ballot question or an independent expenditure to submit a certification to the Campaign Finance and Public Disclosure Board that it was not a foreign-influenced corporation as of the date the contribution or expenditure was made.

The bill also broadens the definition of expressly advocating to include certain types of political communications, even if they do not use words or phrases of express advocacy, such as “vote for” or “vote against.”

Expressly advocating is used to identify certain types of independent expenditures that require disclosure and reporting to the Campaign Finance and Public Disclosure Board.

The bill becomes effective January 1, 2024.

San Diego, California’s contribution limits have been adjusted for the 2024 election cycle due to inflation. The maximum donation an individual can make to a candidate in a City Council race has increased from $650 to $750 and the donation limit to candidates for mayor and city attorney has increased from $1,200 to $1,350. This change is one of the largest adjustments in San Diego’s history, following historic inflation of around 7% during the two years since the contribution limits were last increased.

Gov. Brian Kemp signed a bill changing the name of the Government Transparency and Campaign Finance Commission back to the State Ethics Commission.

The much longer commission name was the product of a major ethics overhaul in 2010.

In addition to the name change, House Bill 572 also clarifies rules for late contribution reporting.

A contribution designated for a general election given close to a primary election date does not need reported within two days.

The new law will take effect on July 1.

The Ohio office of Secretary of State has published increased contribution limits.

The contribution limits for PACs, PCEs and individuals may contribute to statewide candidates, candidates for General Assembly, county parties, PACs, and PCEs increased from $13,704.41 to $15,499.69 per election; and from $41,113.24 to $46,499.08  per calendar year to state parties; and from $20,556.62 to $23,249.54 per calendar year to legislative campaign funds.

The amount of gifts corporations and labor unions may provide per year to a state political party, county political party, or legislative campaign fund, for certain specified purposes, such as facilities; equipment, and supplies, increased from $11,274.23 to $12,751.16.

Mayoral candidate Paul Vallas loaned $100,100 to his campaign after advancing to the April 4 runoff election against Brandon Johnson.

The two candidates may now receive unlimited contributions because contribution limits do not apply in any city race where the self-funding or independent expenditure threshold of $100,000 is exceeded.

The city’s pay-to-play limits on campaign contributions remain in place.

Companies and people doing business with the city or its sister agencies are limited to contributing $1,500 to any one candidate per year.

The Orange County Council has voted to raise the campaign contribution limit from $2,200 to $2,500 per election cycle.

The Orange County Campaign Reform Ordinance requires the board to adjust the campaign contribution limitation in February of every odd year.

The Orange County Council adjusts the contribution limit according to changes in the Consumer Price Index and rounds to the nearest $100.